Legal Question in Real Estate Law in California
My husband is a financial disaster. Knowing this, I have protected my personal finances by filing taxes separately, establishing and funding a trust and keeping banking accts apart. I want to buy a house and/ or income property, but do not want to share the asset. In CA, can I do this with an LLC, or do I need to get a divorce. I'm 56 and we have only been married 5 yrs. Thank you!
3 Answers from Attorneys
If you use any community assets to buy the house then it remains community property. Also, to the extent you use community assets to pay the mortgage, utilities, etc., for the house at least that part is community property. Money you clearly had before the marriage and that you have not mixed with the community assets is your private funds. Putting hte house into an LLC [unless you have a track history with the bank, they will not accept an LLC as owner and evn if they did you would be required you to co-sign]. Any asset in the LLC is subject to his creditors if it appears he has any interest in it.
If it does not bother you, probably the safest way to protect your assets is to divorce him and just live together. Make a property division with your getting the entire house.
I basically agree with Mr. Shers. The short answer is that anything you do to segregate the asset from your personal community property assets and income will prevent you from getting financing for the house.
You don't need to get a divorce or form an LLC. What you need to do is keep everything separate. You must buy the house with separate property funds, and keep title in your name. Mortgage payments and payments for improvement must also be made with your separate property funds.
You should be aware that your earnings during the marriage are considered community property, unless you have a prenuptial or postnuptial agreement in writing that provides otherwise.
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